A spread markup is the extra amount a broker adds to the raw bid and ask prices it receives from liquidity providers, so the client sees a wider spread than the raw market price. The difference is part of the broker's revenue. Brokers usually offer either a standard account with a markup and no commission, or a raw (ECN-style) account with a tight spread plus a commission per lot. Markups are set by symbol and trading group in the liquidity bridge or trading server.
- Markup = client spread minus raw liquidity spread.
- Standard accounts earn through markup; raw accounts earn through commission.
- Markups are set per symbol and group in the bridge or MT5 server.
- Markups should be disclosed clearly in trading conditions.
- Too wide a markup costs clients; too narrow may not cover costs.
Looking for a liquidity bridge? Markups, commissions and routing per symbol and group, with execution reports.
Every price a client sees on a broker's platform starts as a price from a liquidity provider. The broker then decides what spread to show. That decision, the spread markup, is one of the main ways brokers earn revenue. Here is how it works.
A simple example
| Bid | Ask | Spread | |
|---|---|---|---|
| Raw price from liquidity provider | 1.08500 | 1.08506 | 0.6 pips |
| Markup added by broker | −0.3 pips | +0.3 pips | +0.6 pips |
| Price shown to client | 1.08497 | 1.08509 | 1.2 pips |
The numbers are illustrative. The broker earns the markup on every trade the client opens and closes.
Markup vs commission pricing
| Account type | Spread | Commission | Suits |
|---|---|---|---|
| Standard | Raw spread plus markup | None | Beginners who want simple pricing |
| Raw / ECN-style | Raw or near-raw spread | Fixed per lot | Active and algorithmic traders |
| Hybrid | Small markup | Smaller commission | Brokers balancing both |
Where markups are set
Markups are configured per symbol and per trading group, usually in the liquidity bridge or on the MT5 server. That lets you offer different conditions to different account types, countries or IB groups. See liquidity bridge and liquidity aggregation.
How to set markups sensibly
- Know your costs: liquidity, platform, payments and IB rebates per lot.
- Compare your spreads with competitors in your target markets.
- Widen carefully around news and low-liquidity hours, and say so in your terms.
- Leave room for IB rebates if partners are paid per lot.
- Review profitability by symbol and group with reporting.
Transparency
Publish typical and minimum spreads, commissions and swap rates for each account type. Regulators expect clear cost disclosure, and traders compare brokers on it. Read how forex brokers make money and STP vs ECN vs market maker.
General information reviewed November 2026, not legal, tax or investment advice. Figures and rules change; confirm with the regulator or qualified counsel before relying on them. MetaTrader is a trademark of MetaQuotes Ltd.